SMA Solar raises 2022 outlook as supply chain woes ease, demand grows

SMA Solar Technology AG (ETR:S92) on Thursday upgraded its earnings outlook for 2022 to between EUR 60 million and EUR 75 million (USD 75.27m) amid growing demand and easing supply chain constraints.

Previously, the German photovoltaic (PV) inverters maker projected earnings before interest, tax, depreciation and amortisation (EBITDA) in the range of EUR 10 million to EUR 60 million.

The forecast for earnings before interest and tax (EBIT) was also raised to EUR 22 million-37 million. Until now, SMA Solar expected an EBIT result in the range of a loss of EUR 30 million to earnings of EUR 20 million.

The sales outlook was narrowed to between EUR 975 million and EUR 1.05 billion from previously EUR 900 million to EUR 1.05 billion.

The company attributed the more optimistic expectations to the continued high level of incoming orders and a gradual improvement in the supply of electronic components.

“Demand for our products and solutions continues to develop very well, particularly in the Home Solutions and Commercial & Industrial Solutions segments. As of the end of September we have a product-related order backlog of more than 1.2 billion euros," said chief executive Juergen Reinert.

Due to the difficulty in the supply of components at the beginning of this year, SMA Solar turned to a loss in the first half of 2022. However, the situation has begun to improve and is expected to ease further in the coming months, enabling the company to meet the growing demand in the Large Scale and Project Solutions segment.

Additionally, the third-quarter performance was bolstered by a positive effect in the lower double-digit million euro range from the sale of real estate.

The report for SMA Solar's financial performance in the third quarter will be published on November 10.

(EUR 1 = USD 1.004)

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